Wells Fargo saw better results in card/auto/personal banking. But still overwhelmed by lower mortgage originations and industry-hammered investment banking and much of capital markets activities. Still a Sell on stock and benchmark bonds. Regulatory and counterparty risks are Medium level.
ALM is front and center for big bank risks as the Fed fights a rates war against inflation. Positive expectations for fatter margins and rising NII is being offset by a slower to recession economy that could stymie the rate impact improvements.
Citi did another tap dance earnings routine as it tries to keep the investor pack from splitting. As the Eagles 50th anniversay rock tour setlist sometimes highllights its "The Long Run" that matters. And Citi wants its investors to keep the faith and the relationship alive in its long turnaround journey. We shall see. Neutral on stock. Sell on bonds. Regulatory risk High. Counterparty risk Medium-to-High.